YourStake, YourStory

EP 22: The PAX Principles: Darryl Lyons, CEO, on building his firm with intention and incorporating Biblically Responsible Investing

From Mobile Home to Financially Home: Darryl's Journey Darryl shares his personal journey growing up in a mobile home to eventually founding PAX Financial Group. He recalls, "I was edging the skirting of our mobile home. And if you get too close to the skirting, you crack it. And so I just thought, how do people have houses with foundations? I just became curious about money." While biblical values were not originally a focus, about five years ago Darryl had an awakening to fully live out his faith, making Biblically Responsible Investing (BRI) core to PAX's approach. Cultivating a Community-Driven Culture Darryl discusses how he has intentionally shaped PAX's unique culture around their values. Every client-facing team member, from advisors to 401(k) and insurance specialists, is required to serve on the board of a non-profit aligned with PAX's mission of giving people hope. This policy not only keeps the team engaged with the local community but also serves as a business development channel. "About two or three years in, if you're doing the right thing for the right reasons, there's going to be a very wealthy person that's on the board or affiliated with the board saying, I've been watching you and I like you." Navigating the Transition from Advisor to CEO One of the most significant challenges Daryl faced in his journey was the transition from working directly with clients as an advisor to taking on the role of CEO. He candidly shares, "Vacillating between the two is really hard because it's really two parts of the brain. I can imagine going into a strategy meeting for the business and then spending a couple hours with clients, and then going back and rethinking about strategy. It really doesn't work that well." Daryl emphasizes the importance of understanding your own skills, passions, and the needs of the organization during this transition. "It got to the point where I said, I really got to make a decision for the betterment of everyone." Daryl admits that the process wasn't always smooth, and he had to learn from his mistakes along the way. One key lesson he learned was the importance of clear communication and setting expectations with clients. Another critical aspect of the transition was getting buy-in from the team. Daryl thoughtfully brought in advisors as equity partners to build excitement and ensure everyone was in the right seat before stepping back from client work. For advisors considering a similar transition,  Daryl's advice is to be intentional, communicate clearly, and lean on your team. By understanding your own strengths and weaknesses, setting expectations with clients, and empowering your team members, you can successfully navigate the shift from advisor to CEO while maintaining the trust and confidence of all stakeholders. The Journey Continues Daryl's story is a testament to the power of aligning one's values and faith with their professional pursuits. By committing to not be lukewarm, but commit to his beliefs and continuously learning and adapting, he has built a thriving firm that is making a positive impact on clients, employees, and the community. As Daryl looks to the future, he is excited about the growth potential for biblically responsible investing and the role technology will play in making it more accessible, tangible, and explainable to investors. He sees PAX Financial Group as well-positioned to lead the charge in this space, with a strong team, a clear mission, and a commitment to excellence. For advisors and investors alike, Daryl's journey offers valuable insights and inspiration. Whether you're navigating a transition in your own career, looking to align your investments with your values, or seeking to make a positive impact in your community, Daryl's story shows that it's possible to achieve success while staying true to what matters most. Ready to dive deeper into Daryl's story and learn more about biblically responsible investing? Watch the full episode below! Youtube: https://youtu.be/2j-AHXj5Z28 [https://youtu.be/2j-AHXj5Z28] Additional Resources Learn more about Darryl Lyons [https://paxfinancialgroup.com/team-member/darryl-w-lyons/] Pax Financial Group [https://paxfinancialgroup.com/]

EP 21: The Queen Bee of ESG: Paula Glick on Honeytree's Disciplined, Integrated Approach

The Journey to Intentional ESG Integration Paula discusses her early career experiences at ESG research firms Sustainalytics and MSCI, which illuminated opportunities to more systematically and holistically weave ESG into the investment process. Rather than relegating ESG to a siloed, reactive overlay, Paula set out to put ESG factors on equal footing with traditional financial metrics. Honeytree's Investment Process In part of this episode, Paula dives into the details of Honeytree's two-phase investment process. 1. Applying 25 ESG qualification criteria to filter a broad index down to a concentrated set of companies 2. Conducting deep-dive analysis on the selected companies across 45 ESG and financial metrics, from science-based emissions targets to parental leave policies The result is a high-conviction portfolio of 20-25 companies making a net positive stakeholder impact. As Paula emphasizes, "Our companies aren't thematic in nature. They could be making clothing, shoes, consumer staples, or tech. What we're trying to find are companies that are well stakeholder-governed, that understand the impacts they're making on all their stakeholders is actually what's driving their bottom line." Looking Beyond the Obvious Paula shares that Honeytree looks beyond obvious thematic ESG darlings like Tesla to uncover less apparent impact stories, such as Cummins' transition from diesel to electric and hydrogen engines. She also highlights examples of Honeytree's ESG criteria in action, like requiring a minimum of 33% board diversity.  The Future of ESG Investing Looking ahead, Paula sees ESG becoming increasingly mainstream as corporate sustainability disclosure ramps up, with ESG data becoming as integral as financial statements to holistically understand a company's risks and opportunities. With its disciplined, integrated approach to ESG analysis, Honeytree is poised to continue pioneering intentional, impactful investing.  To learn more about their innovative strategy and recently launched U.S. Equity ETF, visit Honeytree's website [https://www.honeytreeinvest.com/] and check out BEEZ ETF [https://honeytreeinvestetfs.com/]. Be sure to subscribe to the YourStake, Your Story podcast for more conversations with leaders challenging the status quo and innovating at the forefront of values-aligned investing.

Ep 20: Hospicing the Old, Midwifing the New: Building the Financial Future with Angela Barbash, CSRIC, CoFounder & CEO at ReValue Investments

Revalue is a values-driven investment firm founded in 2013 by Angela Barbash, an experienced investment advisor with over 20 years of service. The firm's mission is to assist individuals in aligning their finances with their values by divesting from the extractive economy and investing in the regenerative economy. Revalue focuses on providing investment options in the public markets that support impact-oriented communities and organizations. They work closely with clients to identify their desired impacts and narrow down their investment preferences, including the type of organizations, investment structures, and specific impact areas such as community development, renewable energy, or local businesses. Taking a partnership approach, Revalue offers proactive due diligence on investment opportunities. They maintain a data room where clients can access information on funds, community investment funds, and other vetted investments. Additionally, Revalue encourages clients to scout for direct investments in their communities, such as local businesses or projects. The firm provides guidance and support in evaluating these opportunities to ensure they align with the client's investment policy statement and risk tolerance. Revalue's approach to values-driven investing goes beyond traditional financial metrics. They prioritize qualitative factors and impact metrics, allowing clients to invest in line with their values and contribute to the transition from the extractive economy to the regenerative economy. With a team of eight employee-owners, Revalue has experienced significant growth and serves a diverse client community, including accredited high net worth investors, institutional investors, and non-accredited wealth builders. Over the past decade, they have educated thousands of individuals, and currently have nearly 200 clients in their community. Revalue's success in aligning finances with values has inspired other advisors in the industry. To support this growing interest, Revalue recommends starting with a small group of highly motivated clients to beta test their approach and gain valuable experience. They also emphasize the importance of joining peer-to-peer learning communities within the industry to share due diligence efforts and learn from one another. In conclusion, Revalue is a pioneering values-driven investment firm that assists clients in aligning their finances with their values. Through a partnership approach, they help clients divest from the extractive economy and invest in the regenerative economy. By prioritizing impact metrics and qualitative factors, Revalue enables clients to make investments that reflect their values and contribute to positive change in their communities. Revalue assists clients in divesting from public markets and investing in impact-oriented opportunities in the private community markets. They believe in aligning clients' finances with their values and helping them make a positive impact through their investments. When clients express interest in divestment and reinvestment into regenerative finance and the local economy, Revalue starts by assessing their risk tolerance and building an investment policy statement (IPS). The IPS helps identify the appropriate percentage of the portfolio that can be allocated to impact investments, ensuring clients are comfortable with the level of risk involved. Revalue offers two tracks for clients to explore. Some clients already have knowledge about divestment and impact investing and come to Revalue specifically for their expertise in these areas. Others may have personal finance questions and needs and are looking for a values-aligned advisor. For the latter group, the concept of divestment may be new, and Revalue educates them on the possibilities and benefits. The next step is to narrow down the scope of the impact investments based on the clients' preferences. Revalue helps clients target the specific impacts they want to have, such as investing in solar energy or supporting local food systems. This process helps clients navigate the vast array of offerings in the private markets and makes it more manageable. Revalue has a partnership approach with their clients. They proactively look for investment opportunities like community investment funds and CDFI notes, which they include in their data rooms for clients to review. On the other hand, clients are encouraged to be scouts for direct investments, such as local businesses or projects in their communities. Revalue provides guidance and due diligence support to ensure that these investments align with the clients' IPS parameters. Revalue's approach to impact investing in the private community markets differs from the traditional focus on quarterly earnings and benchmarking against the S&P 500. They take a more qualitative approach, considering the broader impacts and outcomes of the investments. This approach allows clients to make investments that align with their values and contribute to the transition from an extractive economy to a regenerative one. For advisors interested in incorporating impact-oriented opportunities in the private community markets, Revalue suggests starting with a beta group of highly motivated clients. This group can help test the process and provide valuable feedback. Revalue also recommends joining peer-to-peer learning communities like Rad Planners or attending conferences like ESG for Impact to connect with other advisors and share due diligence efforts. Overall, Revalue's mission is to assist clients in divesting from public markets and investing in impact-oriented opportunities in the private community markets. They believe in the power of aligning finances with values and are dedicated to helping clients make a positive impact through their investments. Revalue, as highlighted in the podcast episode, places great emphasis on assessing clients' risk tolerance and developing an investment policy statement (IPS) to guide their impact investments. This approach ensures that clients' values and financial goals are aligned and that their investments are tailored to their specific needs. When clients express interest in divesting and investing in impact-oriented communities, Revalue begins by assessing their risk tolerance. This assessment goes beyond just their financial ability to take risks and also considers their emotional risk tolerance. By understanding clients' risk tolerance, Revalue can determine the appropriate allocation of their portfolio towards impact investments. The next step in the process is the development of an investment policy statement. This statement outlines the percentage of the overall portfolio that is suitable for impact investments and sets the direction for the client's investment strategy. In some cases, the IPS may also serve as a destination point, outlining the desired composition of the portfolio in the future. Revalue recognizes that impact investments in the private markets can be overwhelming due to the diverse range of offerings and the lack of organization in this space. To address this, Revalue takes a partnership approach with its clients. They proactively search for investment opportunities such as community investment funds and CDFI notes, which they then make available to their clients. On the other hand, clients are encouraged to act as scouts for direct investments, such as local businesses or projects in their communities. Revalue provides guidance and due diligence support to clients as they explore these opportunities. Throughout the process, Revalue acknowledges that knowledge and savviness about investing are not determined by wealth or income. They approach each client with an open mind, recognizing that clients may come from diverse backgrounds and levels of financial literacy. Education and a learning journey are key components of Revalue's approach, ensuring that clients have a solid understanding of impact investing and are empowered to make informed decisions. Overall, Revalue's emphasis on assessing risk tolerance and developing an investment policy statement reflects their commitment to aligning clients' values with their financial goals. By tailoring impact investments to each client's unique needs and providing ongoing support and education, Revalue aims to empower clients to make meaningful and impactful investment choices.

Ep 19: Harnessing unique data to develop competitive advantages with Bill Davis, Founder & Portfolio Manager at Stance Capital

Welcome to the latest episode of "Your Stake, Your Story," in this episode we welcomed Bill Davis, the founder of Stance Capital. With our co-founder and host, Gabe Rissman, the discussion navigates through Bill's unique career path, which spans from the direct mail industry to renewable energy, ultimately leading to his groundbreaking work in applying complex data models to ESG investing. His expertise sheds light on the intricate dynamics of the ESG landscape, and the challenges and triumphs in aligning investment strategies while finding ways to incorporate values without compromise into the portfolio-building process. "You can't scale an industry if you're offering concessionary returns. It was sort of like you're not going to maybe make as much as you otherwise would, but you're going to sleep a lot better at night. But if you really want to scale it, you have to prove that it's free. So that has always been what we have been trying to prove.” - Bill Davis This episode also delves into Bill’s strategic innovations in developing new investment products that synergize the benefits of both private and public market investing. The conversation encompasses the pivotal role of major corporations in global decarbonization efforts and the influential impact of public markets in fostering sustainable investment practices. Furthermore, Mr. Davis discusses his unique approach to ESG data analysis in building out material risk factors in his strategies. Key Points of the Episode: * Finding the thread of Bill’s Career Path from the direct mail business to Stance Capital and discussing the through line between. * Data-Driven Decision Making: Learn about Davis's approach to leveraging data across different sectors, emphasizing his innovative methods in informed decision-making within ESG investing. * The Role of using both Private and Public market investing as tools to generate impact for clients. * He shares his thesis for starting Stance Capital and how that’s changed over time and how the ESG conversation has shifted in the last few years. Watch the full video: https://youtu.be/ktwmH1JzEpM About Stance Capital Stance Capital specializes in quantitative ESG (Environmental, Social, Governance) asset management and research. They are a Boston-based Registered Investment Advisor, and their clients are individuals, families, endowments, and institutions. They also build products for other investment firms under research and sub-advisory agreements. Stance Capital took a critical evaluation of the ESG industry and found three key flaws that we aim to solve: 1. Ethical Consistency: Aligning capital with client values is generally not being done in a thoughtful or consistent manner 2. Value for fees: Many PMs are NOT adequately active for the level of fees they generate 3. Risk Management: Risk efficiency is arguably a large source of out-performance that is not properly implemented Given the rise of disclosure of ESG metrics Stance can take advantage of advances in big data, distributed cloud computing, machine learning, and artificial intelligence to help their clients achieve their investment objectives. They have built a fully data-driven and systematic approach to Investing that gives quantifiable impact and performance metrics for their clients. About Bill Davis: Bill Davis is Founder & Portfolio Manager at Stance Capital. Prior to forming Stance Capital, LLC, Mr. Davis was co-founder and Managing Director of Empirical Asset Management, and Portfolio Manager on EAM Sustainable Equity, a strategy he launched in 2014. Prior to co-founding Empirical, he was the founder and CEO of Ze-gen, a venture and private equity backed renewable energy company. Mr. Davis received a B.A. from Connecticut College, and his career in business has included serving as CEO or founder of numerous companies including: Database Marketing Corporation in 1986, Holland Mark in 1997, and Cambridge Brand Analytics in 2003. He is Vice Chair of Impact Infrastructure, LLC, and serves on not-for-profit boards of Ceres and Seven Hills Global Outreach. He is a founding member of the President’s Council of Ceres. Mr. Davis has taught at Columbia University Center for Environmental Research and Conservation, and guest lectured at Harvard College, Harvard Business School, MIT, MIT/Sloan, Vanderbilt, and Boston University. Mr. Davis holds a Series 65. To learn more about Bill Davis and Stance Capital: Bill Davis LinkedIn [https://www.linkedin.com/in/bill-davis-90a7b91/] Stance Capital [https://www.stancecap.com/] Stance Performance [https://www.stancecap.com/performance] Hennessy Stance ESG ETF [https://www.hennessyetfs.com/etfs/stnc-esg-etf]

Ep. 18 - From JP Morgan to Eden Financial: A Journey of Entrepreneurship and Impact - ft. Nycole Freer, CFP, BFA

[00:01:05] Priorities shift during pandemic.  [00:04:11] Children's book on financial education. [00:08:10] Values as a big deal.  [00:11:36] Emotional safety in investing.  [00:17:56] ESG and financial performance.  [00:19:59] Values based investing future.